UPDATE 1-Bare Escentuals' Q1 profit beats Wall St; outlook bleak
(Recasts; adds details, background, share movement)
July 30 (Reuters) - Cosmetics maker Bare Escentuals Inc BARE.O posted a higher-than-expected second-quarter profit as sales grew at its wholesale outlets, but forecast full-year earnings below Wall Street estimates, sending its shares down about 24 percent.
San Francisco-based Bare Escentuals, which rolled out its first retail store in 1976 but went public only in late 2006, said it now expects fiscal 2008 sales to grow 15 to 20 percent and earnings to be about $1.13 to $1.18 a share.
Wall Street analysts were expecting earnings of $1.19 a share, before special items, on revenue of $629.6 million for the period.
The company, which sells its skin care and body care products under the bareMinerals, RareMinerals and its namesake brands, reported a second-quarter net profit of $24.7 million, or 26 cents a share, up from $20.2 million, or 22 cents a share, a year earlier.
Net sales rose 12 percent to $138.5 million.
Analysts on average expected earnings of 25 cents a share, before special items, on revenue of $145.3 million, according to Reuters Estimates.
Bare Escentuals, which competes with Estee Lauder Cos Inc (EL.N: Cotización), Elizabeth Arden Inc RDEN.O and L'Oreal (OREP.PA: Cotización), saw total wholesale segment sales rise 18.3 percent, while total retail segment sales grew only 1.9 percent in the quarter.
Shares of the company were down $4.03 at $12.90 in trading after the bell. They closed at $16.93 Wednesday on Nasdaq. (Reporting by Dhanya Skariachan in Bangalore; Editing by Jarshad Kakkrakandy)
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